Global Cloud backup Market size is expected to reach $ 4.98 billion by 2025, at a CAGR of 20.87% during 2020-2025. In recent time, enterprises are replacing traditional backup systems with cloud-based systems to enhance the business efficiency and transparency. In addition to this, most of the companies have now realized the risk of losing data in a traditional backup system and hence they are shifting their preferences to use cloud based backup system. Similarly, the availability of cloud based backup for virtual machines are creating new opportunity for cloud backup market. Approximately 55% -65% of enterprises are likely to move towards virtualization by the end of 2021 across the globe. Further, the growing adoption of cloud computing, rising requirement of computer data storage, and growing data center demand are building a favorable market environment for cloud backup.
Key takeaways
North America dominates the cloud backup market owing to rising number of data centers and cloud based applications in 2019.
The rising penetration of IoT based devices in manufacturing industries, large volume of data generation in telecom sector are creating new opportunity for cloud backup market.
Hybrid cloud storage and backup is expected to accelerate the cloud backup market due to rise in cross border transaction.
Data compliance issue due to lack of standardized regulation is likely to hinder the growth of cloud backup industry.
End User Type – Segment Analysis
Manufacturing and telecom sector are expected to provide fast pace growth to cloud Backup market at a CAGR of 22.45% during 2020-2025. Rising adoption of IoT based equipment in industrial application are continuously increasing the data consumption in manufacturing industries. The Industrial IoT market is expected to reach $ 100 billion by 2025 growing at CAGR of 18.56% during 2020-2025. Hence, most of the data centers are built on providing support to industrial data management. While the industrial manufacturing sector are presently struggling to reduce operational cost, the cloud based backup can be considered as the most cost effective solution for the data management applications. Telecom sector is also expected to provide large growth opportunity for cloud back market due to deployment of 5G technology worldwide. 5G services are expected to be commercialized on a large scale post 2020. Approximately, 50% -55% of the investments driven by 5G technology is likely to be directed towards datacenters by 2021. The implementation of 5G technology is likely to create huge data consumption , which will impact the cloud backup market positively.